Solar Data Explorer:

Save money by installing solar panels in UT.

Year-round sunshine and favorable state incentives make the Beehive State one of the best parts of the country to install solar.

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Solar in Utah

The state of Utah is full of natural beauty with Zion, Bryce Canyon, and Arches National Parks, and much more. Protecting the state’s natural beauty through renewable sources has become a goal of the state’s legislators. With the right policies and incentives in place, from a renewable energy systems tax credit to solar easements and rights and net metering, the Beehive State is a great place to go solar.

How much do solar panels cost in Utah?

From Utah data, it is shown that the average cost of a solar panel installation ranges from $13,260 to $17,940. On a cost per watt ($/W) basis, a solar panel installation in Utah ranges in price from $2.65 to $3.59.

How long does it take to earn back your initial investment in solar panels? A solar payback period is the amount of time it takes for property owners who install solar panels to recover their initial investment through electricity savings. In Utah, the average solar payback period is 9.36 years.

Regardless of the exact cost of installation, there are many affordable financing options for solar panel systems. Cash purchases are one common method to pay for solar and often lead to the most long-term value for your money. If an upfront purchase isn’t right for you, solar loans and solar lease/PPAs are available to help finance a solar energy system.

Go solar in Utah: top solar resources

What solar panels should I install in Utah?

For property owners, you now can customize your solar panels, inverters, racking systems, and batteries, as well as the general aesthetic of the installation. This customizability has made it important for solar consumers to understand these various factors. For example, the best solar panels available may have premium efficiencies and warranties, but will typically be more costly. However, depending on the size of the installation, you’ll need to determine whether high-efficiency solar panels that can produce more electricity are worthwhile. Also, your appetite for risk can help determine which solar warranties best fit your needs. These are just a few of the many factors to consider when selecting solar panel equipment.

How much energy can I get from solar in Utah?

Aside from the power output of the solar equipment you choose to install, the amount of energy you generate with solar panels in Utah is directly related to the amount of sunlight that hits your panels. Fortunately, Utah ranks in the top ten nationwide for highest averages for peak sun hours, helping your solar panels to save the most money over their lifetime.

There are additional factors that determine how much solar electricity you can produce. These include shading, panel orientation, and panel angle, which are all used to calculate your total production estimate. a prediction of how much energy your solar installation will produce over time. This evaluation offers a clear estimate of how much energy your solar installation will produce. You can see how much solar panels can save you based on factors like geographic location and shading by using the EnergySage Solar Calculator.

Utah solar incentives

Utah is becoming known for its great solar incentives and programs, which are considered some of the best in the country. Learn more about why solar panels are such a great investment in Utah.

What rebates and incentives are there in Utah for solar?

The federal Investment Tax Credit has been one of the most reliable and impactful incentives for solar across the U.S. This solar incentive allows you to deduct 30 percent of the total system cost from your federal taxes. For example, a solar energy system installation that costs $15,000 out of pocket will qualify for a tax deduction of $4,500. This advantageous incentive lasts until the end of 2019 - the tax credit amount steps down to 26 percent for 2020 before falling to 22 percent for 2021. The federal ITC is eliminated for residential solar installations after 2021, but commercial solar energy system owners can still deduct 10 percent of a commercial solar system cost from their taxes in 2022 and beyond.

Besides the federal ITC, Utah has additional incentives for going solar that are dependent on your area and utility company. Of note are renewable energy systems tax credit, solar easements and rights, and net metering availability. To learn more about Utah’s best financial incentives for solar, check out our complete overview of the state’s best solar incentives.

True Cost of Solar Guide™ for Utah

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History of solar policy in Utah

As of 2018, Utah has installed over 1,650 megawatts (MW) of solar energy capacity, ranking the state 9th on SEIA’s national ranking. Impressively, 6.40 percent of the state’s electricity comes from solar energy. While dropping solar costs have been a crucial factor for this rush, the Beehive State’s various solar policies have significantly influenced the industry’s development as well.

The first solar policy passed in Utah came in 1979, with the state’s Solar Easements regulations. Although the policy doesn’t focus on financial incentives, it ensures a process for property owners to work with their fellow neighbors to make sure that nothing shades a solar panel system while the sun is shining.

The state’s solar policy stalled until 2001, when Utah passed the Renewable Energy Systems Tax Credit, allowing homeowners to claim 25 percent off of the total solar equipment and installation costs, up to $1,600. Similarly to the Federal Investment Tax Credit, though, the maximum credit from this policy has reduced $400 each year, and will expire altogether in 2022.

Utah’s most important solar policy is the state’s net metering program, which began in 2002. Net metering programs allow residents to send surplus net energy to the electric grid and receive compensation for it on their energy bill. In Utah, the state’s only investor-owned utility–Rocky Mountain Power (RMP)–is required to credit excess solar generation at the full retail rate, a better policy than other states’ compensation at lower wholesale or avoided cost values. The program is available for residential systems up to 25 kilowatts (kW) in capacity and non-residential systems up to two megawatts (MW) in capacity.

Nationally, state energy requirements have been instrumental to the development of clean energy. In Utah’s case, policymakers passed the Renewable Portfolio Goal in 2008, which is a voluntary target. In most cases throughout the country, RPS policies require mandatory compliance, which has led to significant utility incentives for solar to help meet the targets. Nevertheless, Utah’s RPS established a voluntary target of sourcing 20 percent of electricity sales from renewable energy by 2020, which, if it were mandatory, would rank the state among the highest targets by 2020.

In addition to these foundational solar policies, Utah also provides financial and regulatory incentives to encourage solar development. For commercial development, one incentive the state has offered since 2004 is the Alternative Energy Sales Tax Exemption, which removes sales tax for systems larger than 2 MW. Also for commercial properties, Utah instituted PACE financing in 2013 that provides loans specifically for energy improvements, including solar installations of up to 2 MW.

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I used EnergySage's Solar Data Explorer to understand the costs and benefits of solar in Utah. Check it out: https://www.energysage.com/solar-panels/ut/